Today we are pleased to release the ViFi Lite Paper! 🚀 🚀 🚀 Here's a quick thread about our core mechanism design and how they work to help users realize the full value of USD FX swaps onchain!.

All told, this is how all the pieces work together for a user who's selling $1000 USDT in exchange for Trinidadian dollars at a government rate of $7 TTD and a parallel market rate of $7.5 TTD

Here's a link to the LitePaper, there's a lot of math and different features of the protocol that we will discuss later but for now, he's a primer on all things ViFi

DEX: We pair vRQT and vFiat inside of an AMM to simulate the delta between the Central Bank rate and the parallel market rate. This opens up arbitrage opportunities whenever there's a price action on the currency. It's a buffer between USD and Fiat.

💹 vTokens: ViFi mints three ERC20 tokens to manage liquidity in the protocol. We've discussed vUSD and we'll breakdown vFiat and vRQT.

vFiat is the 1:1 representation of a local currency, vKES for Kenya Shillings or vLira for Turkish Lira. Virtual Reserve Quota Token (vRQT) represents how much USD a user deposited in the protocol.

💰 VARQ: The Virtual Access Reserved Quota burns vUSD and mints a vFiat token like vPesos and a Virtual Reserve Quota Token (vRQT). vRQT functions as a call option and is a speculative asset that is used to price in parallel market trading inside of an AMM.

🌐 Virtualizer: Deposits stablecoins to mint vUSD at a 1:1 ratio. Easily wrap and unwrap tokens while managing collateral efficiently. Wrapped vUSD allows ViFi to manage economic security efficiently. Deposits are swapped for stable yield-bearing tokens like USDM and sDAI.

VEX: The Virtual Exchange takes away all of the complexity around our protocol and gives the user a direct swap from cryptodollars to vFiat in a single transactions.

Soon we'll talk about how we design for economic security by discussing state transitions for different price actions. Protocol resilience is top of mind and we can't wait to share more!.

@sandyzkp based.